The Hazardous Location LED Lighting Market is estimated to be valued at US$ 527.02 Mn or Mn in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hazardous location LED lighting products are specially designed and tested lighting fixtures suitable for installation in hazardous areas where flammable gases, vapors, dusts or fibers may be present. These LED lights operate at low temperatures, consume less power and have longer shelf life compared to traditional light sources such as fluorescent and incandescent lamps. They are used in oil refineries, chemical plants, utility tunnels, mining facilities, marine applications and other potentially explosive environments.
Market Dynamics:
The growing demand for energy efficient lighting solutions from oil & gas and industrial sectors is a major factor driving the growth of hazardous location LED lighting market. According to International Energy Agency, commercial and industrial sectors accounted for over 60% of global electricity consumption in 2020. LED lights help reduce energy costs significantly for industrial facilities located in hazardous areas. Furthermore, stringent workplace safety regulations regarding safety of electrical equipment installed in hazardous zones will also contribute to the market growth over the forecast period. However, high initial investment costs associated with LED lights may hinder the market growth. Technological advancements leading to development of sensors and controls integrated LED lights catering to Industry 4.0 requirements will present lucrative opportunities for market players.
Segment Analysis
The hazardous location LED lighting market is dominated by the oil and gas segment, which holds over 30% share of the global market. The oil and gas industry requires hazardous location lighting to illuminate areas such as refineries, offshore oil rigs, LNG storage facilities. LED lights are increasingly being adopted in this segment as they provide several advantages like extreme durability, high light output, energy efficiency over traditional lighting solutions.
PEST Analysis
Political: Growth of the hazardous location LED lighting market is positively influenced by regulatory standards mandating the use of energy efficient lighting systems in hazardous areas.
Economic: The rising capital expenditure on infrastructure expansion in oil & gas and chemical industries is driving demand. Additionally, low total cost of ownership of LED lights is positively impacting the market.
Social: Increasing awareness about workplace safety and standards is promoting the adoption of certified hazardous location lighting for improved reliability and risk mitigation.
Technological: Technological advancements in LED technology such as miniaturization, IP protection, and improved light output are enhancing the applicability of LED lights in hazardous industrial locations.
Key Takeaways
Global Hazardous Location LED Lighting Market Demand is expected to witness high growth, exhibiting CAGR of 8.1% over the forecast period, due to increasing infrastructural spending in oil & gas industries and rising safety regulations.
Regionally, the North America hazardous location LED lighting market holds the major market share of over 35% due to strong presence of chemical and oil & gas industry in the region. Asia Pacific region is expected to witness the fastest growth rate owing to rising industrialization and increasing demand from emerging countries such as China and India.
Key players operating in the hazardous location LED lighting market are Worksite Lighting LLC, DCD Technologies ME FZCO, Azz Inc., Nemalux Inc., IKIO LED Lighting, Luceco Middle East FZCO, Glamox UK, WAROM Technology MENA FZCO, SA Equip, Shenzhen CESP Co. Ltd., Raytec Ltd., PROLUX International FZ LLC, Hilclare Lighting, Munira Lighting (AL Hatimi Trading FZE), Hubbell Limited, Emerson FZE (Emerson Electric Co.), Current Lighting Solutions LLC (GE Current), ABB Installation Products Inc., Larson Electronics LLC, R.Stahl Limited, Technology Co. Ltd., Digital Lumens Inc. (OSRAM), Dialight PLC, and Eaton Corporation.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
